State lemon laws help consumers who buy or lease new motor vehicles and have repeated problems getting their vehicles properly repaired under the manufacturer’s original warranty.
Lemon laws can help a consumer get the vehicle repurchased, replaced, or repaired through a process that is less complicated and expensive than filing a lawsuit and going to court.
A car is a “lemon” when it is determined that the vehicle is defective beyond repair. Most states have some form of a lemon law to protect car buyers. These laws generally only apply to new cars purchased or leased by consumers and small businesses.
But a used car may also be covered if it is still covered by the manufacturer’s original warranty (not an extended service contract), or if the defect started and was reported to the dealer while under the manufacturer’s original warranty, and the defect continues to exist.
Lemon laws often do not cover repossessed vehicles, non-travel trailers, boats, or farm equipment.
Lemon laws only cover defects that substantially impair the use or market value of the vehicle—which does not include issues like minor rattles, noises, and car audio imperfections.
Each state has its own requirements, but common factors to qualify as a lemon include:
• The vehicle has a substantial manufacturing defect
• The defect is covered by a manufacturer’s written warranty
• The owner reports the defect to the dealer or manufacturer within the warranty term
• The owner gives the dealer a reasonable number of attempts to repair the defect or condition
• The owner gives the manufacturer written notice (preferably by certified mail) of the defect and at least one opportunity to fix the defect
• The defect persists and substantially impairs the vehicle’s use or market value or creates a serious safety hazard
Lemon laws are usually located in a state’s statutes and are often administered by the state’s department of motor vehicles or a specified consumer protection agency.
In Iowa, the lemon law covers new vehicles that are purchased or leased and have persistent defects that substantially impair their use, value, or safety, and which cannot be repaired after a reasonable number of attempts. The law applies to cars, trucks, and motorcycles that are used for personal, family, or household purposes. To qualify under Iowa's lemon law, the vehicle must have a substantial defect covered by the manufacturer's warranty, the defect must be reported to the dealer or manufacturer within the warranty period, and the owner must allow the dealer a reasonable number of attempts to fix the defect. Additionally, the owner must notify the manufacturer in writing of the defect and give them an opportunity to repair it. If the defect persists and significantly impairs the vehicle's use or market value, or poses a serious safety risk, the consumer may be entitled to a replacement vehicle or a refund. Iowa's lemon law does not cover used cars unless they are still under the original manufacturer's warranty and the defect was reported during this period. The law also excludes vehicles such as repossessed vehicles, non-travel trailers, boats, or farm equipment. Issues that do not substantially impair the use or market value of the vehicle, such as minor rattles or audio imperfections, are not covered. The Iowa lemon law is administered by the Iowa Attorney General's Office, and consumers seeking relief under this law may do so without necessarily going to court, which can be a less complicated and expensive process.